AWL Stockpiles Edible Oils Amid Global Shipping Disruptions

AWL Agri Business has been stockpiling imported edible oils in anticipation of ongoing supply disruptions. The company, which is India's market leader in the edible oil sector, has increased its inventory cover for imported edible oil to 40-45 days from its usual 30-35 days.

This move comes as businesses globally struggle with shipping disruptions caused by conflicts in the Middle East and between Russia and Ukraine. AWL CEO Shrikant Kanhere said the company's strategy is to maintain higher inventory levels until it is confident that logistics disruptions will not recur.

The decision may give larger brands an edge over smaller rivals, as refiners with stronger balance sheets can afford to hold larger inventories and avoid stock-outs. Deven Choksey of DRChoksey FinServ noted that the move 'could help larger brands gain share from smaller rivals'.